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DISTRIBUTION OR DISSEMINATION DIRECTLY OR INDIRECTLY, IN WHOLE OR
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VANCOUVER, BC, July 14, 2020
/CNW/ - Hannan Metals Limited ("Hannan" or the
"Company") (TSXV: HAN) (OTCPK: HANNF) is pleased to
announce that pursuant to a price reservation filed with the TSX
Venture Exchange (the "Exchange") on June 29, 2020, and subsequent submission to the
Exchange, the Company received conditional acceptance from the
Exchange to proceed with a non-brokered private placement of up to
4,000,000 units (the "Units") with a strategic investor
group (the "Strategic Investor"), at a price of C$0.25 per Unit for aggregate gross proceeds to
the Company of C$1,000,000 (the
"Private Placement"). Each Unit comprises one common
share and one-half of one common share purchase warrant. Each
whole warrant entitles the holder to purchase one additional common
share at an exercise price of C$0.35
per common share for a period of two years expiring on July 13, 2022.
Mr Hudson, Chairman and CEO, states, "We welcome the new
Strategic Investor to Hannan's register. The investor has
already been a great support for the Company, and we look forward
to working together as we go forward to further enhance shareholder
value as we build on our copper-silver discovery at San Martin in
Peru. This deal was struck at the end of June and was based
on a trading price of $0.295 at the
time. Given the subsequent market movement and to minimize
dilution, the Board decided to restrict this placement to the
strategic investor alone. We look forward to advancing our project,
as our understanding has grown significantly with our 2020 field
results, combined with recent remote sensed mapping which has
provided an advanced geological perspective and
overview."
All securities issued pursuant to the Private Placement are
subject to a four-month hold period under applicable securities
laws in Canada expiring on
November 14, 2020. The Private
Placement is subject to the final acceptance of the Exchange.
No finder's fees or commissions were paid in connection with
the Private Placement.
The Company intends to use the net proceeds from the Private
Placement for exploration on the Company's Peruvian exploration
properties and for working capital and general corporate
purposes.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy nor shall there be any sale of any
of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful. The securities have not
been, and will not be, registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities
Act"), or the securities laws of any state of the United States, and may not be offered or
sold in the United States or to,
or for the account or benefit of, U.S. persons (as defined in
Regulation S under the U.S. Securities Act) absent registration
under the U.S. Securities Act and applicable state securities laws
or an exemption from such registration requirements.
About Hannan Metals Limited
(TSX.V:HAN) (OTCPK: HANNF)
Hannan Metals Limited is an exploration company
developing sustainable and ethical resources of metal needed to
meet the transition to a low carbon economy. Over the last decade,
the team behind Hannan has forged a long and successful record of
discovering, financing and advancing mineral projects in
Europe and Peru.
https://www.facebook.com/hannan.metals
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On behalf of the Board,
"Michael Hudson"
Michael Hudson, Chairman & CEO
Forward Looking Statements
Certain information set forth in this news release contains
"forward-looking statements" and "forward- looking information"
under applicable securities laws. Except for statements of
historical fact, certain information contained herein constitutes
forward-looking statements, which include the Company's
expectations regarding future performance based on current results,
the use of proceeds from the Private Placement, final acceptance of
the Offering from the Exchange, expected cash costs based on the
Company's current internal expectations, estimates, projections,
assumptions and beliefs, which may prove to be incorrect. These
statements are not guarantees of future performance and undue
reliance should not be placed on them. Such forward-looking
statements necessarily involve known and unknown risks and
uncertainties, which may cause the Company's actual performance and
financial results in future periods to differ materially from any
projections of future performance or results expressed or implied
by such forward-looking statement. These risks and uncertainties
include, but are not limited to: the use of the net proceeds from
the Private Placement, the potential impact of epidemics, pandemics
or other public health crises, including the current outbreak of
the novel coronavirus known as COVID-19 on the Company's business,
the granting of additional claim applications in Peru, community relations, liabilities
inherent in mine development and production, geological risks, the
financial markets generally, and the ability of the Company to
raise additional capital to fund future operations. There can be no
assurance that forward-looking statements will prove to be
accurate, and actual results and future events could differ
materially from those anticipated in such statements. The Company
undertakes no obligation to update forward-looking statements if
circumstances or management's estimates or opinions should change
except as required by applicable securities laws. The reader is
cautioned not to place undue reliance on forward-looking
statements.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
SOURCE Hannan Metals Ltd.
